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Technology Adoption Under Price Uncertainty

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  • Kim, Tae-Kyun
  • Hayes, Dermot J.
  • Hallam, J. Arne

Abstract

The paper examines the impact of changes in the variance of output prices on the bias and intrafirm rate of diffusion of technical change. The results indicate that a reduction in the variance of output prices will increase the rate of adoption and intrafirm speed of diffusion of yield-increasing technologies. The opposite is true for cost-reducing technologies.

Suggested Citation

  • Kim, Tae-Kyun & Hayes, Dermot J. & Hallam, J. Arne, 1989. "Technology Adoption Under Price Uncertainty," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270682, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea89:270682
    DOI: 10.22004/ag.econ.270682
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    References listed on IDEAS

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    1. Edward K. Y. Chen, 1983. "The Diffusion of Technology," Palgrave Macmillan Books, in: Multinational Corporations, Technology and Employment, chapter 4, pages 69-93, Palgrave Macmillan.
    2. L. Dean Hiebert, 1974. "Risk, Learning, and the Adoption of Fertilizer Responsive Seed Varieties," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(4), pages 764-768.
    3. Just, Richard E. & Zilberman, David, 1988. "The effects of agricultural development policies on income distribution and technological change in agriculture," Journal of Development Economics, Elsevier, vol. 28(2), pages 193-216, March.
    4. Stoneman, P, 1981. "Intra-Firm Diffusion, Bayesian Learning and Profitability," Economic Journal, Royal Economic Society, vol. 91(362), pages 375-388, June.
    5. Jensen, Richard, 1983. "Innovation adoption and diffusion when there are competing innovations," Journal of Economic Theory, Elsevier, vol. 29(1), pages 161-171, February.
    6. Gershon Feder, 1982. "Adoption of Interrelated Agricultural Innovations: Complementarity and the Impacts of Risk, Scale, and Credit," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 94-101.
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    Cited by:

    1. Foster, William E. & Babcock, Bruce A., 1993. "Commodity Policy, Price Incentives, And The Growth In Per-Acre Yields," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(1), pages 1-13, July.
    2. Arouna, Aminou & Michler, Jeffrey D. & Lokossou, Jourdain C., 2021. "Contract farming and rural transformation: Evidence from a field experiment in Benin," Journal of Development Economics, Elsevier, vol. 151(C).
    3. Eric T. Micheels & Hamish R. Gow, 2015. "The Effect of Market Orientation on Learning, Innovativeness, and Performance in Primary Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 209-233, June.
    4. Wouter Zant, 2014. "Do Organic Inputs in African Subsistence Agriculture Raise Productivity? Evidence from Plot Data of Malawi Household Surveys," Tinbergen Institute Discussion Papers 14-114/V, Tinbergen Institute.
    5. Cuong Le Van & Nguyen To The, 2019. "Farmers’ adoption of organic production," Asia-Pacific Journal of Regional Science, Springer, vol. 3(1), pages 33-59, February.
    6. Ihli, Hanna Julia & Musshoff, Oliver, 2013. "Investment Behavior of Ugandan Smallholder Farmers: An Experimental Analysis," GlobalFood Discussion Papers 154775, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.

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